Prince Pipes And Fittings Ltd · NSE:PRINCEPIPE
Prince Pipes And Fittings — Q2 FY23 Earnings Presentation
40 slides from Prince Pipes And Fittings's earnings presentation, November 2022
Slide 1: Prince Pipes and Fittings Limited Investor Presentation Q2 & H1 FY23
Prince Pipes and Fittings Limited INVESTOR PRESENTATION Q2 & H1 FY23
Slide 2: Disclaimer
DISCLAIMER This information may contain certain forward-looking statements/details in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially different from the views ex
Slide 3: Table of Contents
TABLE OF CONTENTS PERFORMANCE HIGHLIGHTS 04 BUSINESS HIGHLIGHTS 06 FINANCIAL PERFORMANCE 09 INDUSTRY OVERVIEW 13 COMPANY OVERVIEW 15 THE ROAD AHEAD… 25 PRODUCT BASKET 26 SEEKING GROWTH…THE ESG WAY 31 AWARDS AND ACHIEVEMENTS 32 BOARD OF DIRECTORS 35 CORPORATE INFORMATION AND SHAREHOLDING 36 ANNUAL FI
Slide 4: Performance Highlights – Q2FY23
PERFORMANCE HIGHLIGHTS – Q2FY23 o Q2FY23 revenues stood at ₹ 636 crore as compared to ₹ 761 crore in Q2FY22 ➢ Performance adversely impacted by sharp correction in PVC prices o Volumes in Q2FY23 at 38,458 MT as compared to 42,845 MT in Q2FY22 o EBITDA for Q2FY23 at ₹ -11 crore vs. ₹ 123 crore in Q2F
Slide 5: Performance Highlights – H1 FY23
PERFORMANCE HIGHLIGHTS – H1 FY23 o H1FY23 witnessed a revenue growth of 14% YoY over H1FY22 from ₹ 1,092 crore to ₹ 1,241 crore o Volumes improved by 14% YoY in H1FY23 to 69,707 MT compared to 61,312 MT in H1FY22 o EBITDA at ₹ 33 crore in H1FY23 vs. ₹ 164 crore in H1FY22 o PAT in H1FY23 at ₹ -8 cror
Slide 6: Business Highlights
BUSINESS HIGHLIGHTS o Unprecedented inventory loss witnessed on account of once in a multi decade sharp correction ➢ Steep PVC price correction of ₹ 29 per kg in Q2 FY23 and ₹ 55 per kg in H1 FY23 ➢ Q2FY23 volumes adversely affected due to continuing channel destocking o Company continues to be bull
Slide 7: Business Highlights
BUSINESS HIGHLIGHTS o Signed a Limited Liability Partnership Agreement with Cleanwin Energy Eight LLP (Cleanwin) ➢ Cleanwin is engaged in the business of generation of renewable energy from conventional and non-conventional sources of energy ➢ Company’s Kolhapur plant to benefit from this wind power
Slide 8: Business Highlights
BUSINESS HIGHLIGHTS o Jaipur plant achieved IGBC Platinum rated Green Building certification from the Indian Green Building Council (IGBC) ➢ Reiterates commitment to ESG as one of its core pillars of achieving operational excellence o Progress on Bathware division ➢ Shortlisting vendors for outsourc
Slide 9: Financial Performance for Q2 FY23
FINANCIAL PERFORMANCE FOR Q2 FY23 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) 123 80 76 761 42,845 38,458 636 60 40 20 0 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 -20 -11 -24 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 -40 9 INVESTOR PRESENTATION | November 2022
Slide 10: Financial Performance for H1 FY23
FINANCIAL PERFORMANCE FOR H1 FY23 Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) Revenue (₹ in Crs.) 1,241 69,707 94 61,312 164 1,092 33 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 -8 10 INVESTOR PRESENTATION | November 2022
Slide 11: Profit & Loss Statement as on 30th September 2022
PROFIT & LOSS STATEMENT AS ON 30TH SEPTEMBER 2022 ₹ in Crore Particulars Q2FY23 Q2FY22 Y-o-Y (%) H1FY23 H1FY22 Y-o-Y (%) Total Sales 636 761 (16) 1,241 1,092 14 Raw Material Consumed 552 548 1 1,032 780 32 Employee benefit expenses 28 28 - 54 49 10 Other Expenses 67 62 8 122 99 24 EBITDA (11) 123 (1
Slide 12: Working Capital Cycle
WORKING CAPITAL CYCLE 88 68 68 58 55 36 36* 66 67 78 59 47 70 40 77 59 62 40 66 60 85 77 48 78 38 48 65 44 FY18 FY19 FY20 FY21 FY22 Q1FY23 H1FY23 Debtor Days Inventory Days Creditor Days Working Capital Days * Reclassified to 15 days based on regrouping of financials for FY 21 12 INVESTOR PRESENTATI
Slide 13: Industry Overview
INDUSTRY OVERVIEW India's Low per capita pipe Consumption vs World Avg. (in Kg) Domestic Plastic Pipes & Fittings Market Size (₹. in Bn) 12-14% CAGR 110 550 10-12% CAGR 65 World Avg. 30 ~300 270 250 45 225 205 33 180 11 US Europe China Brazil India FY14 FY15 FY16 FY17 FY18 FY19 FY24P Source: CRISIL
Slide 14: Industry Growth Drivers
INDUSTRY GROWTH DRIVERS Swachh Bharat Mission 75% of 600 million – To achieve universal households do sanitation coverage and Smart City Mission – To Indians face drive economic growth not have high to extreme to put focus on drinking water By 2030, 40% of and improve the quality stress over Sanitat
Slide 15: Company Overview
COMPANY OVERVIEW Vision Mission Prince Pipes and Fittings Limited is To be an acknowledged leader in Indian plastic Our mission is to bring a revolution in plastic an Indian manufacturer of polymer piping industry by exceeding customers piping industry through innovative solutions expectations and m
Slide 16: Prince at a Glance
PRINCE AT A GLANCE 1987 7 8 7,200+ Incorporation No. of Facilities Warehouses SKUs ~1,500+ CRISIL A+ Long Term 1705 Channel Partners Outlook: STABLE Debt Free Employees 6,393 Cr 249 Cr ~3,15,000 MTPA Prince and Market Cap PAT Total installed Trubore (For Sep 30th 2022) (For FY 2022) Capacity Product
Slide 17: Our Strategy to Success
OUR STRATEGY TO SUCCESS We generate organic growth by focusing on innovation, market proximity, digitalization and our industrial potential. Organic growth 1 2 Promoting clean energy at Manufacturing units Operational Excellence 3 We achieve cost reductions by continuously We cater to new product se
Slide 18: Our Journey
OUR JOURNEY 2000 New plant set up 2018 1987 at Dadra Appointed Akshay Kumar 2020 (Western India) Incorporated as a as Brand Ambassador and for pipe Got listed on BSE & NSE private limited company rolled out campaigns manufacturing with an IPO of ₹ 5bn across platforms 2012 Acquisition of plants in T
Slide 19: Our Manufacturing Capabilities
OUR MANUFACTURING CAPABILITIES Athal 1995 Dadra 2000 Haridwar 2008 Chennai 2012 Product Product Product Product Installed 11,110 Installed 60,286 Installed 89,163 Installed 50,825 Capacity MTPA FITTINGS Capacity MTPA PIPES Capacity MTPA PIPES & Capacity PIPES MTPA FITTINGS Kolhapur 2012 Jaipur 2019
Slide 20: Always Staying Ahead of the Curve
ALWAYS STAYING AHEAD OF THE CURVE 2008 2012 2014 2020 2021 First company to Acquired Chennai & Early movers in Tie up with Lubrizol Commissioning of venture into North Kolhapur plant Eastern India with a to form CPVC Telangana plant, marking India and set up a through inorganic unique asset light co
Slide 21: Strategic Distribution - Expanding Footprints
STRATEGIC DISTRIBUTION - EXPANDING FOOTPRINTS NORTH EAST JAMMKASHMIR First mover in 2008 with Next frontier of growth Haridwar plant HIMACHAL PRADESH Asset light model To scale brand equity in North PUNJAB UTTARAKHAND through outsourcing HARYANA HARIDWAR GHAZIABAD DELHI g CORPORATE OFFICE SILIGURI J
Slide 22: Investment Rationale
INVESTMENT RATIONALE A management Strategic A nationwide Portfolio of Long-term team of experienced placement of robust 7200+ SKUs, partnerships to and skillful manufacturing distribution one of the ensure smooth professionals with plants running network largest amongst and cohesive proven leadershi
Slide 23: Market Consolidation – A Boon for Prince Pipes and Fittings
MARKET CONSOLIDATION – A BOON FOR PRINCE PIPES AND FITTINGS PPFL is one of the front-runners to benefit from these events and has gained significant market share over the last seven years 4 Opportunity to grab major market share as the Nationwide manufacturing and distribution unorganised sector bec
Slide 24: Leadership and Innovation
LEADERSHIP AND INNOVATION Over 3 decades, built a deep knowledge of handling multiple polymers Leading to a transition in polymer profile Largest range of SKU’s across multi polymers Early Adopters Market Leaders Innovative Trendsetters Sustained market share in PP-R In DWC Underground Drainage In A
Slide 25: The Road Ahead…Why Prince FlowGuard Plus?
THE ROAD AHEAD…WHY PRINCE FLOWGUARD PLUS ? 1st Choice World's most World-Class Extreme Globally for preferred range Product now Temperature Potable Water of CPVC Pipes & comes with 30 Resistance for The Inventors World’s Applications Fittings with 50 Years of Trust use upto 93°C India's Leading Pipe
Slide 26: Product Basket
PRODUCT BASKET Plumbing Solutions PPR Plumbing & Low Noise SWR CPVC Plumbing Industrial UPVC Plumbing Underground Drainage Roofwater Piping Systems UPVC Industrial Piping Systems Underground Double Wall Corrugated Pipes Sewage & Underground Drainage Portfolio Reclaim Piping Systems SWR Piping System
Slide 27: Product Basket
PRODUCT BASKET Sewage & Underground Drainage Portfolio Irrigation Solutions Storage Solutions Agriculture Piping Systems Manhole & Chamber Covers Solutions Borewell FRP Manhole & Chamber Cover 27 INVESTOR PRESENTATION | November 2022
Slide 28: Technical Collaboration with Tooling Holland
TECHNICAL COLLABORATION WITH TOOLING HOLLAND INNOVATING TO THE NEXT LEVEL PRINCE PIPES TIES UP WITH TOOLING HOLLAND BV Building & offering Great impetus to superior products, aligned Prince Pipes’ to global standards and at Global leaders in Mould growth plans competitive costs Manufacturing Researc
Slide 29: Storefit – Paani Ka Bank
STOREFIT – PAANI KA BANK Launched Range of Tanks under the Brand 30 Years Leveraging experience in Plastics & Building materials offering a wide range of sizes from 500 to 5,000 ltrs Strong Pan India Presence Advantage of Multi-Locations Manufacturing & Marketing Robust Distribution Infrastructure E
Slide 30: Focus on Triple Bottom Line
FOCUS ON TRIPLE BOTTOM LINE 9,934 MT Coal Burned/Year Financial Green Energy 1 Equal To 328 K Tree Seedlings, Grown for a Decade Triple Reduce Green-house Gas Emissions over the past years Bottom-line 2 Environmental Goals 19.2% Carbon emission reduced (MT/MT production) till date 65,228 MT Carbon F
Slide 31: Seeking Growth – The ESG Way
SEEKING GROWTH – THE ESG WAY… Use Clean Energy Conserve Water Environment Efficient Waste Management The challenging times during the pandemic showcased the value of Manufacture high-quality products environment, sustainability and Contribute towards Social Causes cleanliness. We, at Prince Pipes ar
Slide 32: Awards & Achievements
AWARDS & ACHIEVEMENTS Certificate of appreciation Mr. Parag Chheda - JMD was Digital Transformation for active association at the awarded the ‘Inspiring Awards 2016 – Prince pipes has been awarded 2016 Gujarat Premier 10th Mega Business Leader Award’ at Transformation with 2022 The best channel Loya
Slide 33: Product Branding
PRODUCT BRANDING Auto Branding & Marketing Targeting Regional Festivals Promoting Prince + FGP through shop boards Auto Branding & World Plumbing Day Marketing Campaign 33 INVESTOR PRESENTATION | November 2022
Slide 34: Pan India-Influencer & Channel Engagement Activities
PAN INDIA-INFLUENCER & CHANNEL ENGAGEMENT ACTIVITIES 34 INVESTOR PRESENTATION | November 2022
Slide 35: Board of Directors
BOARD OF DIRECTORS Independent & Nominee Directors Mr. Rajendra Gogri, Mr. Dilip Deshpande, Mr. Jayant S. Chheda Independent Director Independent Director Founder, Chairman and MD He has more than 45 years of experience, having served He has an extensive industry knowledge, more than four He has an
Slide 36: Corporate Information & Shareholding
CORPORATE INFORMATION & SHAREHOLDING Shareholding Pattern (as on 30th September, 2022) Stock Data Institutions Market Cap as on 09th November 2022 ₹ 6291 Cr. 19% Stock Price as on 09th November 2022 ₹ 569 52 Week (High / Low) ₹ 897/513 Others NSE / BSE - Symbol PRINCEPIPE / 542907 18% Promoters 63%
Slide 37: Annual Financial Performance
ANNUAL FINANCIAL PERFORMANCE ₹ in Crore Net Revenue from Products EBITDA & EBITDA Margin PAT & PAT Margin 2,657 12.3%% 12.3% 14.0% 17.5% 15.6% 5.6% 5.3% 6.9% 10.7% 9.4% 2,072 Margin Margin 415 249 1,561 1,631 362 222 1,315 229 162 184 113 74 82 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18
Slide 38: Stakeholder's Value Creation
STAKEHOLDER'S VALUE CREATION A disciplined balance sheet Navigating opportunities across new Strong Corporate Governance 35% geographies 29% Enhancing Brand Highly Scalable Equity Manufacturing Capabilities 217% 36% Prudent Capital Vision-oriented Allocation leadership 38 INVESTOR PRESENTATION | Nov
Slide 39: Outlook
OUTLOOK Expanding our distribution 00 network across target markets Introducing value added products Improving RoCE and RoE ratios to ensure cost efficiency and by monitoring volume and enhanced market share price growth Bringing a more PREMIUM touch to the PRINCE brand Achieving sustainable growth
Slide 40: Thank You
THANK YOU PRINCE PIPES AND FITTINGS LTD. CONTACT DETAILS Mr. Shyam Sharda CFO THE RUBY, 8TH FLOOR, 29, SENAPATI BAPAT MARG Mail: shy@princepipes.com (TULSI PIPE ROAD), DADAR (WEST), MUMBAI- 400028, INDIA. Fax: + 91 22 6602 2220 Mr. Anand Gupta Email: info@princepipes.com Deputy CFO Mail: aag@princep
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